Do I Need to Repay a Tax Penalty Canceled After an Honest Mistake?

Answered by Shaykh Muhammad Carr

Question

Do I need to repay the HMRC £100 penalty that was canceled after an appeal, if I later realized my income was just over the threshold?

Answer

Thank you for your question.

The Prophet (Allah bless him and grant him peace) said,

“Indeed, actions are judged by their intentions.” [Bukhari]

You do not need to repay the £100 penalty. Your appeal was based on a genuine, although incorrect, assumption that your income was below the threshold. The Prophet (Allah bless him and grant him peace) said,

“Indeed, Allah has pardoned for me my nation: mistakes, forgetfulness, and what they are compelled to do.” [Ibn Maja]

In the future, ensure that your submissions are double-checked for accuracy. The Prophet (Allah bless him and grant him peace) said,

“The believer is not stung from the same hole twice.” [Bukhari]

I pray this is of benefit and that Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.